18th Jun 2007 16:00
Speymill Deutsche Immobilien Co PLC18 June 2007 Speymill Deutsche Immobilien Company plc ("SDIC" or "the Company") Further Investments to close first tranche Speymill Deutsche Immobilien Company plc (AIM: SDIC; SDCC), the pan-Germanresidential property investment company listed on AIM, announces finalinvestments to close commitments for the first tranche of funds raised ("theOriginal Portfolio"). Main highlights as at 15 June 2007 are: - Residential properties in various German cities notarised (i.e. committed to be purchased) for a cumulative cash consideration of approximately EUR925.4 million - Expected initial net rental income (as at notarisation) of approximately EUR67.3 million per annum - Blended net initial property yield (as at notarisation) of 7.1%, anticipated to rise to 7.5% at the end of the period commencing 12 months after fully completed investments, property management takeover and completion of refurbishments. The Company has notarised apartment blocks containing 16,955 units at an overallaverage price of EUR829 per square metre. There were approximately 1,277 vacantunits at notarisation (circa 7.5% vacancy including units to be refurbished orredecorated prior to letting). Over EUR26 million is planned to be allocated for refurbishment of those properties currently notarised bringing the total anticipated investment in the Original Portfolio to approximately EUR951 million. This refurbishment expenditure is expected to be yield and value enhancing. After contract completion and when the properties have been taken over, refurbished and are fully under management for a suitable period, the Company will target a 95% overall occupancy rate (allowing for some natural vacancy and tenant fluctuation). It is envisaged that this target will be reached in the second year after takeover. C Share Update In May 2007, the Company raised a second tranche of funding through the issue ofC Shares for investment into a further protfolio of properties ("the C SharePortfolio"). The Company is currently evaluating, negotiating and performing duediligence on a new pipeline of properties for the C Share Portfolio. The Company has also put in place arrangements in relation to the debt for the CShare Portfolio which the Manager anticipates will bring the average financingcosts for the portfolio in line with its original objective of below 5%. 18 June 2007 Contact: Smith & Williamson Corporate Finance Limited +44 (0)20 7131 4000Azhic Basirov / Siobhan Sergeant Notes to editors: - Speymill Deutsche Immobilien Company plc is a pan-German residential property investment company which listed on AIM on March 2006, raising £170 million on admission. - In May 2007, the Company raised a further EUR250 million through a placing of C Shares which were admitted to trading on AIM on 10 May 2007. - The Company was established to invest in the German property market and, predominantly, in the residential sector. It is anticipated that once fully invested, the Company will have a balanced portfolio of properties throughout Germany. - The Company's objective is to provide Shareholders with an attractive level of income together with the prospect for long-term capital growth. - The Manager is Speymill Property Managers Limited and the Investment Adviser is GOAL Service GmbH. The Manager and Investment Adviser are responsible for identifying new investment opportunities. - The Manager is a subsidiary of Speymill Group plc (AIM: SYG) while the Investment Adviser is a joint venture partner of Speymill Group plc (which owns 51% of the venture). This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Sdic Power.